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Bitfinex multi-coin cryptocurrency exchange – December 2018 review

5 December 2018

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Bitfinex Professional Trading Exchange

Bitfinex is a full-featured cryptocurrency exchange that is trusted by millions of traders worldwide.

Since 2014, Bitfinex has emerged as one of the world’s leading bitcoin exchanges. Based in Hong Kong, the company first entered the market in 2012, and has enjoyed steady expansion ever since.

Today, Bitfinex is a trusted source of cryptocurrency trading, with daily volumes well north of US$1 billion. In addition to bitcoin, it provides access to the world’s leading altcoins as well as full-spec wallet services.

Market participants looking for a one-stop shop for all their cryptocurrency needs will find Bitfinex both convenient and effective.

Pros

Cons

May not be suitable for beginners or those unfamiliar with trading platforms

Fiat currency deposits have been blocked since 18 April 2017. It's not known when they will be available again.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific
provider, service or offering. It is not a recommendation to trade.

What is Bitfinex?

Bitfinex and Tether controversy

Bitfinex is closely affiliated with the Tether company and makes wide use of Tether’s cryptocurrency, known as Tethers (USDT). These are kept pegged to the US dollar and are always worth almost exactly $1.

When users make US dollar deposits on Bitfinex, it will often be credited to their accounts in the form of USDT.

There are currently more than 2 billion USDT in circulation. The Tether company claims to have currency reserves to back up all the Tethers in circulation, but there is no concrete evidence of this claim. Tether recently discontinued its relationship with the auditors that were going to verify this claim, causing further uncertainty.

Because Bitfinex gets a lot of its liquidity from Tether, many people are concerned that the exchange might not be as financially secure as it claims to be.

Bitfinex has the reputation of being one of the world’s biggest and most advanced cryptocurrency exchanges. Advanced trading features, deep liquidity and access to multiple altcoins make Bitfinex a contender for serious traders who want all the options at their fingertips to help them make money from cryptocurrency.

In addition to being widely recognized as the world’s largest bitcoin exchange, Bitfinex offers a customizable interface that allows you to personalize your workstation. The platform is fully equipped with margin trading and ten different order types that give you the opportunity to trade the market without limitation.

Bitfinex aims to be a powerful and professional-level cryptocurrency exchange.

Features not available

As of November 2017:

US-based traders are not allowed to use Bitfinex.

No fiat currency deposits are available. You can only trade by depositing cryptocurrencies.

Available countries

Bitfinex is available globally with few exceptions. At the time of writing, US-based traders are not permitted to use the platform.

Which payment methods are accepted?

Payments can be made directly via cryptocurrency. Bitfinex had previously enabled USD payments, but at the time of writing, in September 2017, that appears to have been disabled.

Corresponding US banks appear to be blocking all USD wires. The last official update from Bitfinex on this matter came in May 2017.

Maker vs taker

Maker fees:These are charged for placing a buy limit order under the ticker price, or a sell limit order above the ticker price. Orders placed which hit a hidden order will always be charged the maker fee.

Taker fees:These are charged for placinganyorder that is executed against a listing in the order book. Hidden orders are always charged the taker fee.

Bitfinex transaction fees

All deposits are fee-free, except bank wires which are charged at the greater of either 0.1% of the deposit amount or $20.

Withdrawals are also subject to a fee depending on the currency being withdrawn, or the transfer type.

Currency withdrawn

Fee

Bitcoin

0.0005 BTC

Bitcoin Cash

0.0005 BCH

Ethereum

0.01 ETH

Iota

Free

Bitcoin Gold

Free

Litecoin

0.001 LTC

EOS

0.1 EOS

Ethereum Classic

0.01 ETC

Dash

0.01 DSH

NEO

Free

Zcash

0.001 ZEC

Monero

0.04 XMR

Ripple

0.02 XRP

OmiseGO

0.1 OMG

Santiment

0.1 SAN

Metaverse

0.01 ETP

Streamr

1.0 DATA

Qtum

0.01QTM

Eidoo

0.5 EDO

Aventus

0.5 AVT

Tether

5.0 USD

Bank wire

The greater of 0.1% or $20

Express bank wire

The greater of 1% or $20

How fast will my funds be available?

Withdrawals may take up to 12 hours to complete, although this may be expedited if certain security requirements are met. Enabling 2-factor authentication and ensuring that withdrawal addresses have been locked for at least 5 days can ensure that your withdrawals are processed faster.

In general, most automatically processed withdrawals will be available in a few minutes.

Are there any transfer limits?

Verified users are not subject to any withdrawal limits.

Is it safe to use Bitfinex?

Bitfinex was victim to a high-profile security breach in 2016 in which 120,000 bitcoin, worth $72 million at the time, were stolen by hackers. Bitfinex compensated the users whose bitcoin was stolen by issuing them tokens equivalent to the number of bitcoin they lost, and then purchasing these tokens back from their users at bitcoin prices over time.

Bitfinex bought back all the tokens in less than a year, fully compensating affected customers and showing its deep liquidity and dedication to customers in the process.

That being said, Bitfinex has tight security measures in place to protect client funds. At any given time about 99.5% of client funds are held in cold storage and away from the prying eyes of hackers. The platform also uses 2-factor authentication for logins and withdrawals, and email encryption to monitor withdrawals by IP. New withdrawal IPs are also locked for 24 hours.

These features, combined with other data encryption techniques, also ensure that client privacy is maintained.

Customer support

Bitfinex offers comprehensive customer support, including 24/7 email, an FAQ section and an active forum where you can ask questions.

Once logged in, you can also submit a ticket to the support team should you have any outstanding issues.

Bitfinex pros and cons

Pros

Deep liquidity

Advanced trading features and order types

A very popular bitcoin exchange

Competitive fees

Lists an exceptionally wide range of cryptocurrencies

Mobile app supported

Cons

Exchange was hacked in 2016, raising concerns about security

USD payments have been blocked for some time with no timetable of when they will resume

May not be ideal for beginners

Next steps

If you’re serious about cryptocurrency, it’s worth considering the Bitfinex claim that it’s one of the strongest value propositions on the market today. If you’ve completed your research and would like to get started, head over to Bitfinex.com and select “Sign Up<b><i>” </i></b>at the top right-hand side of the homepage. Create a username and submit your email to begin the registration process.

Frequently asked questions

There are currently no updates on when corresponding US banks will start accepting USD wire transfers again. Bitfinex says it’s working to resolve the matter.

Margin trading is not available for US residents at this time.

Bitfinex offers 3 different wallets for controlling your funds. They include: an exchange wallet (for exchanging funds between currencies), a margin wallet (for margin trading) and a funding wallet for providing financing to other traders.

Image source: Bitfinex

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

3 Responses

finder Customer Care

RenchJanuary 2, 2018Staff

Hi Richard,

Thanks for your inquiry. Please note that we are not affiliated with Bitfinex or any company we feature on our site and so we can only offer you general advice.

Yes, you can buy and sell Bitcoin on Bitfinex in Australia.

There are two main ways to buy bitcoin in Australia.

1. Use a bitcoin broker. This is probably the easiest way to buy bitcoin. If you just want to get it done quickly and easily, and have no plans to become a cryptocurrency trader, then this might be the way to go. The downside is that convenience comes at a cost, and you pay a bit more for the brokerage services.
2. Buy from an exchange. Cryptocurrencies like bitcoin are traded on exchanges. If you want to buy bitcoin as cost-effectively as possible, or plan on doing more trading in future, then choosing a reliable exchange might be what you want to do.

With Bitfinex, the withdrawal fee may vary depending on the currency you are going to withdraw. You can click the link “List of Bitfinex withdrawal fees” then it will show you a table of withdrawal fee per currency.

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